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Models predict that global warming may increase aridity in waterlimited ecosystems by accelerating evapotranspiration. We show that interactions between warming and the dominant biota in a grassland ecosystem produced the reverse effect. In a 2-year field experiment, simulated warming increased spring soil moisture by 5-10% under both ambient and elevated CO[sub 2]. Warming also accelerated the decline of canopy greenness (normalized difference vegetation index) each spring by 11-17% by inducing earlier plant senescence. Lower transpirational water losses resulting from this earlier senescence provide a mechanism for the unexpected rise in soil moisture. Our findings illustrate the potential for organism-environment interactions to modify the direction as well as the magnitude of global change effects on ecosystem functioning. [ABSTRACT FROM AUTHOR]